Bi-Weekly Digest: An Inconclusive Answer in Albany About the Project's Fate
A transfer of rights, or an inquiry? Also: touting up Atlantic Yards' promises and realities. Plus: the EB-5 middleman's political contributions, to Trump and to Hochul.
This digest offers a way to keep up with my Atlantic Yards/Pacific Park Report blog and my other coverage in this newsletter and elsewhere.
There’s a lot to catch up on.
Atlantic Yards faces a key deadline, May 31, 2025, which should trigger $2,000/month penalties for the remaining 876 units (of 2,250) of affordable housing.
Will Empire State Development (ESD), the state authority that oversees/shepherds the project, impose those penalties, Brooklyn Assemblymember Jo Anne Simon asked ESD CEO Hope Knight in a legislative hearing.
Well, Knight said, “we'll have to enforce, y'know, what we have with respect to our contract."
That came after a dialogue in which Knight said they were waiting for the “lender”—actually, the manager of the loan—to present ESD a permitted developer to form a joint venture to develop the six towers (B5-B10) over the Vanderbilt Yard.
Rights to develop those towers have been lost by developer Greenland USA in a foreclosure.
Simon sounded optimistic about Knight’s response, but there’s ample reason to be skeptical. After all, ESD has already avoided imposing fines for the unbuilt Urban Room atrium, and quietly made a deal with Greenland to expand the two-tower project at Site 5, catercorner to the arena.
Who’s got the power?
Meanwhile, as I wrote, there’s not much incentive for the “lender”—controlled by Nicholas Mastrioianni II, CEO of the U.S. Immigration Fund (USIF), the regional center that recruited immigrant investors under the EB-5 investor visa program—to find a partner, because the USIF itself has little or no skin in the game.
So Simon's tweet--"I encourage the lender to present a qualified developer to ESD soon so the long-promised affordable housing can finally be built"--ignored some complexity. A simple transfer of rights disregards the concessions—penalties, timetable, additional bulk—that a developer likely would seek.
New York State, I suggested, should recognize it has leverage over both Greenland, which is still pursuing the Site 5 project, and USIF’s future joint venture aiming to develop the railyard sites. Rather than simply encourage the transfer, legislators should drill down.
EB-5 under scrutiny
This week, I also wrote (see below) how Mastroianni and his son have vigorously supported campaigns for President Donald Trump and Congressional Republicans, but in New York State recognize they have to support Democrats, contributing $50,000 to Gov. Kathy Hochul, who controls ESD.
Meanwhile, Trump’s Commerce Secretary, Howard Lutnick, uttered a key truth about the EB-5 investor visa program, saying it was"full of nonsense, make-believe, and fraud.” It’s actually worse.
Assessing Atlantic Yards
I missed the Feb. 28 screening of the Atlantic Yards documentary Battle for Brooklyn at Pioneer Works in Red Hook, but I have seen video of the presentations and panel, so expect a report this week.
The screening prompted a request for a summary of the project’s promises, so I produced the chart below, which was adapted for the event. Many promises have fallen short; I’ve marked some key ones on the chart in orange. Others remain murky.
The screening prompted a request for a summary of the project’s promises, so I produced the chart above, which was adapted for the event. Many promises have fallen short; I’ve marked some key ones on the chart in orange. Others remain murky.
From this newsletter
Feb. 26: "Jobs, Housing & Hoops"? Tallying Key Atlantic Yards Promises and Realities.
Yes, they built an arena for sports and events. (Biggest winners: two billionaires.) Promised social benefit and neighborhood connection have fallen far short.
March 4: Does Atlantic Yards Just Need a Transfer of Rights? Or an Inquiry? If the EB-5 "lender" didn't put up any money, what incentive does it have? Is New York State ignoring its leverage with penalties? Legislators should drill down.
From Atlantic Yards/Pacific Park Report
Feb. 28: Will NY State enforce the $2K/month affordable housing penalties? ESD CEO Knight tells Assemblymember Simon yes, but doesn't sound convincing.
March 1: Barclays Center releases March 2025 event calendar: 17 ticketed events, including three comedy shows. Plus a few mysteries.
March 5: Foregone property taxes on Barclays Center now estimated at $123.6 million. Payments in lieu of (some) taxes go not to NYC but pay off cheap construction debt.
March 6: The truth within Trump's offhand $5M "Gold Card" visa proposal: EB-5, per Lutnick, is "full of nonsense, make-believe, and fraud." But defenders are lobbying.
March 7: CEO and President of EB-5 middleman USIF: $1.85M in federal political contributions since 2021, mainly to Trump & Republicans. Also: two Brooklyn Democrats, Jeffries and Clarke.
March 8: CEO of EB-5 middleman key to Atlantic Yards contributed $50,000 to Gov. Hochul, who controls project’s fate. U.S. Immigration Fund head(s) also gave $10K to NY State Democrats.